"In400metreskeepright" wrote in message
...

"John Smith" wrote in message
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I know that one of the basic premises of a limited company is that should
a company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting
up a new company with a new registration, doing the same business but
simply transferring all of the assets to the new company, leaving the old
company with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !